4 comments:

It's not my kind of movie but I was at a party once and kind of forced to watch it. I didn't laugh once except for an unintentional joke. The first time I ever met Kevin O'Brien at KTVU, I thought he strikingly resembled character actor Robert Prossky. So who plays the station manager in the movie?!? Yep.

Hey, when Silicon Valley companies started by 28-year-olds are valued at billions for nothing more than providing storage space for photos of people's vacations and selfies in the bathroom mirror, a television station sounds like a bargain.

There's no way KTVU-KICU is worth anything close to a billion. A decade ago, when they were billing $100 million a year and had a profit margin in the 40s, you could say that. But their revenues probably won't top $60 million this year and their profits are terrible compared to other major market stations. So CMG didn't shed any tears making this trade. The guys in Atlanta couldn't understand why KTVU wasn't more profitable, and why sales didn't recover more from the crash in 2008-09. The value of a tv station is based on multiples of cash flow, and cash flow was so bad at KTVU that in the current marketplace the duopoly is worth maybe $300 million, max. In reality nobody would even pay that price because it was well known that Fox wanted to own its station here. A buyer of KTVU would have to expect that after the sale, Fox would pull its affiliation and buy KRON or KOFY. Without Fox, KTVU would be worth what KRON's worth --- something around $10 million ... Pretty much stick value. Anyway, a Fox will reveal what it thinks the station is worth in an upcoming SEC filing. Since it's a trade, the FCC probably won't report a sale price.